Rc Cola Marketing Plan Essay

I. Executive Summary The 2013 Marketing Plan of Adobo Connection chain of restaurants outlines an approach in sales promotion as a newly established restaurant in Metro Manila and to sustain in the preceding years of business. Since the establishment couldn’t afford a commercial advertisement, we believe that providing leaflets and other kinds of cheaper advertisement as our sales promotion. To sustain in the preceding years, a product diversification for a new target market is our proposal. The sales target are roughly around P 500, 000, 000 for next year or a 5% projected increase in sales. 1 II. Company Background A. Company History Established by a Harvard Business School graduate, Mr. Jerome Uy, Adobo Connection is a chain of restaurants that showcase the food and feeling of the Filipino home to everyone. Having around P 5, 000, 000 as an initial capital, the first store was opened in November 2010 in Makati. Backed by the same team that won the Best Foreign Franchise in the 2009 Entrepreneur Franchising Awards, Adobo Connection is now one of the fastest-growing Filipino franchises having 40 stores in Metro Manila and another 9 stores soon-to-open. 2 A. Company Marketing Organizational Chart 3 B. Current Marketing Situation A. Market Situation Adobo Connection now is one of the fastest-growing Filipino franchises and the largest food franchise dedicated to our national dish. The initial investment is at least P3.75 Million (including the franchise fee), depending on the size and condition of the location. The restaurant’s main buyers are Filipinos. They prefer Adobo Connection because of its delicious food at an everyday-affordable price, good ambiance and quick service. B. Company Situation 1. Historical Company Data | 2010| 2011| 2012| Industry Sales| 1 700 000 000| 2 390 000 000| 3 260 000 000| Company Market Shares| 7.05%| 10.04%| 14.11%| Sales Revenue| 120 000 000| 240 000 000| 460 000 000| Row 1 shows the industry sales of the whole adobo restaurant from 2010-2012. Row 2 shows the company market share of Adobo Connection in the entire industry. Row 3 shows the sales revenue of Adobo Connection from 2010-2012. 4 2010| Sales| Market Share| Adobo Connection| 120 000 000| 7.05%| Adobo Republic| 80 000 000| 4.70%| Others| 1 500 000 000| 88.23%| Total| 1 700 000 000| 100%| 2011| Sales| Market Share| Adobo Connection| 240 000 000| 10.04%| Adobo Republic| 150 000 000| 6.27%| Others| 2 000 000 000| 83.68%| Total| 2 390 000 000| 100%| 2012| Sales| Market Share| Adobo Connection| 460 000 000| 14.11%| Adobo Republic| 300 000 000| 9.20%| Others| 2 500 000 000| 76.68%| Total| 3 260 000 000| 100%| C. Competitive Situation Adobo Connection major competitor is Adobo Republic. This competitor has different strategies, valuations, competitive advances and niches in the market. With its niche market and undeniably fair-priced offerings, Adobo Republic has entered the process of expansion and currently has 3 branches, with more to come. And is continuously expanding and creating new stores with great and comfortable ambiance. New home-style meals are currently being developed to offer a wide variety of dishes to their customers. 5 COMPETITIVE LIST OF ADOBO CONECTION AND ADOBO REPUBLIC PRODUCTS AND ITS PRICES ADOBO CONNECTION| PRODUCTS| REGULAR| WITH SOUP & DRINK| Adobo Specialties| Solo Serving| Kuya’s Fried Chicken Adobo Meal| 99.00| 115.00| Kuya’s Fried Pork/Mix Adobo Meal| 109.00| 125.00| Chicken Adobo saGata Meal| 109.00| 125.00| Pork/Mix Adobo saGata Meal| 119.00| 135.00| Mama’s Sweet Chicken Adobo Meal| 99.00| 115.00| Mama’s Sweet Sweet Pork/Mix Adobo| 109.00| 125.00| Lola’s Classic Chicken Adobo Meal| 109.00| 125.00| Lola’s Classic Pork/Mix Adobo Meal| 119.00| 135.00| ADOBO REPUBLIC| PRODUCTS| REGULAR| ADOBO GALORE(w/ Salted Egg & Tomato)| Solo Serving| Adobo Diablo(Hot & Spicy Pork w/ Adobo Rice)| P120.00| Adobo saGata(Chicken, pork, or Mix w/ Steamed Rice)| 115.00| Adobo Pork (W/ Adobo Rice)| 115.00| Adobo Mix (Chicken, Pork w/ Adobo Rice)| 115.00| Adobo Chicken (w/ Adobo Rice)| 110.00| Adobo Liver (w/ Adobo Rice)| 110.00| Adobo Squid (w/ Steamed Rice)| 110.00| Adobo Flakes (w/ Adobo Rice)| 100.00| 6 D. Distribution Situation Adobo Connection Franchise main office is located at Jollibee Center 9th floor, San Miguel, Pasig City. It has several stores in Pasig, Manila, Makati, Quezon City, Mandaluyong, Taguig, Pasay, Muntinlupa, Las Pinas, Paranaque, Caloocan, Malabon, Calabarzon area, and Cebu. At present, the company has grown from 18 to 45 branches nationwide. There are 8 branches in Manila; 7 branches in Calabarzon area; 5 branches in Quezon City; 4 branches in Makati; 4 branches in Mandaluyong; 2 branches in Pasig; 2 branches in Muntinlupa and 1 branch in Taguig, Pasay, Las Pinas, Paranaque, Caloocan, Malabon and Cebu and others are under construction in some places. E. Macro Environment Situation The Philippines has long been undermined with long-term structural problems such that sustainable economic development is yet to be a dream come true. It has been affected by the crisis in a decline in these aspects: export and foreign direct investments. Heavily dependent on electronic and semiconductor exports, the Philippines has seen a downward trend in its export earnings as countries in demand of these exports are now in recession. Foreign direct investments (FDI) lowered because of investors losing confidence in the financial market. Lower Foreign direct investments mean slower economic growth. Having such power and confidence, Adobo Connection has now reached its popularity in the market world. With the continued use of Adobo Connection brand, logo, and system; Research & development and new menu offerings; HR, legal, and finance consultation and Continuous training; Graphic design for marketing and store designs; Inclusion in public relations and national marketing campaigns and efforts;and Quality control and audits, it achieved lots of development in a short period of time. And it motivates the owners to re-create and conceptualize Adobo Connection to better cater to its market with much more affordable costs than any other adobo restaurant. 7 IV. Opportunity and Issue Analysis A. Opportunity Analysis The main opportunity facing Adobo Connection is as follows: 1. It is the fastest-growing Filipino franchise as of the current year 2. They expand intensively into other parts of the country. 3. Adobo Connection could add more services to satisfy their customer’s needs and wants. B. Threats Analysis The main threats facing Adobo Connection are as follows: 1. High competition with mass fast food chain. 2. Some customers prefer a home cooked adobo. 8 C. Main Strength The main strength facing Adobo Connection is as follows: 1. Serves many variety of adobo’s (pork or chicken; sweet, spicy; wet or dry) 2. It is affordable 3. Concentrated brand identity 4. Great locations of branches 5. Great ambiance 6. Good quality of employees 7. Growing many number of franchise 8. Young and professional managers were selected carefully, trained and developed to lead store teams in their quest to achieve high food, services, cleanliness and condition. D. Weakness Analysis The main weakness facing Adobo Connection is as follows: 1. They do not offer meals that can satisfy group customers 2. Not all Filipino’s know their food chain 9 E. Issue Analysis The main weakness facing Adobo Connection are as follows: 1. Should the Adobo Connection diversify their product into fried food, family-size sodas, etc in order to sustain their place in the market? 2. Should Adobo Connection enhance their services offered? 3. Should Adobo Connection increase its advertising and promotion expenditures to match competitors’ expenditures? V. Objectives A. Financial Objective 1. Continuous P 1 000, 000, per day sales 2. To achieve the target sales of P 500,000,000 – 600,000,000 at the year of 2015 B. Marketing objectives 1. To promote Adobo Connection with minimum cost of advertising. 2. To expand the number of franchise outlets from 42 up to more in different malls in metro and also in the other places local and international. 3. Create customer’s loyalty though service qualities efficiency. 10 VI. Marketing Strategy A. Target Market Adobo Connection will focus in aiming young adults and adults as their market segment. B. Positioning Adobo Connection will position as offering â€Å"Home quality service, best value yet quantity wise food†. Adobo Connection is a fast-food chain where you can feel your heart most. By diversifying their product adding new services but would maintain good quality of employees, fast service of food, variety of choices and great ambiance to their food chains customers would come back for more. Customer would not look fast food chain as same old monotonous menu again but would truly enjoy the burst of colorful Filipino cuisine. C. Pricing Strategy Adobo Connection will maintain their affordable prices for their target market as young adults with no works or with adults with works but in a tight budget. D. Services Adobo Connection will maintain their good quality services such as the ambiance, great employees ,fast service of food, But we intent to add more services in order to be more known and unique with the other fast food chains. 11 * Bottomless Barako connection- where student and office workers can do their works or share their experiences with their social society by the Wi-Fi connection and unlimited coffee offering. * Suggestion Hotline – where customers can directly speak out their suggestion or even complains. E. Sales Force Adobo Connection will meticulously select their managers carefully, trained and developed to lead store teams in their quest to achieve high food, services, cleanliness and condition. There employees most especially cooks are required to be trained with six months of training to master a high quality yet fast services of food. Crews are also mandated to have passion in serving their customer who will treat them as their visitors in their house. F. Distribution Channel Adobo connection will focus on putting their stores inside the mall, near school and beside office buildings. Hopefully they could also put up stores internationally. G. Advertising Adobo connection will use low cost promotion yet would reach their target market. It is the most low cost yet highly effective advertising for small and growing business by using the social media as their medium. 12 VII. Action Program ACTION PROGRAM| PERIOD| ACTIVITIES| PERSON/ DEPARTMENT RESPONSIBLE| BUDGET| 1. SERVICE| DECEMBER-onwardsJANUARY to DECEMBER| BARAKO BOTTOMLESSCONNECTIONADOBO SWAK| OPERATION DEPARTMENT| P 823,200| 2. SALES FORCE| JANUARY to DECEMBER| EMPLOYEE OF THE MONTHSTORE OF THE YEAR AWARD| STORE MANAGERS, OPERATION MANAGERS| P 197,600| 3. DISTRIBUTION CHANNEL| JANUARY to DECEMBER| FRANCHISING| OPERATION DEPARTMENT| P 3.5 Million| 4. SALES PROMOTION AND ADVERTISING| DECEMBER-onwardsJANUARY to DECEMBER| PRINT ADPOSTERSFLYERSSTREAMERSTARPAULINBROCHURESOCIAL NETWORKSSELFIE #ADOBO CONNECTION CONTEST| MARKETING DEPARTMENT| P 25,539,366| 13 The action program no.1 refers to the BARAKO BOTTOMLESS WIFI CONNECTION, it tells about having a free wifi connection in the store and purchasing the barako coffee bottomless at all day, all night in just 49php only. ADOBO SWAK where in there’s a adobo rice in a cup and on the top there will be a special adobo dish in it, and ice tea also for the drinks in just 45php only. As indicated in action program no.2 our company will have our own website. The website allows the surfers to get more information about our company and updating reports about us this website will feature about our history, corporate, products, franchising, stores, investor’s information and feedback. And also, surfers will be able to email us their comments and suggestions. The operation department will be responsible with thus action program, and the allotted budget is P 125,000. Employee of the month refers to the incentives that the company will give to the employees who will perform their tasks we ll. Every month store managers will be choosing the best employee. The recipient will get an incentive of P 200 worth of gift certificate. This program will be enabling the sales force to do their best and boost their morale. The allotted budget for this is P 117,600. About the citation of the company to the branch which earned an outstanding sales and focus on the product quality, cleanliness and efficient service. The â€Å"Store of the Year† will received P50,000, while the â€Å"Model Store† which is the second place will received P30,000. The person responsible will be the Operation Manager. The allotted budget for this is P80,000. 14 Action program no.3 refers to the Franchising, The initial investment is at least P3.75 Million (including the franchise fee), depending on the size and condition of location. For the 5-year franchise fee of P650,000, you receive: ​Use of the Adobo Connection brand, logo, and system; Site procurement assistance; Store design assistance; Initial recruitment and training for the whole team; Opening team support; ​and the Adobo Connection Operations Manuals.​ For the continuing fees of 5% of sales (2.5% royalties, 2.5% marketing support), you receive:​ Continued use of Adobo Connection brand, logo, and system; Research & development and new menu offerings; HR, legal, and finance consultation;​Continuous training; Graphic design for marketing and store designs; Inclusion in public relations and national marketing campaigns and efforts;​and Quality control and audits.​ As indicated in action program no. 4 our company will develop a new advertising campaign through PRINT AD, POSTERS, FLYERS, STREAMERS, TARPAULIN, and BROCHURE and also in SOCIAL NETWORKS by launching their new menu, the introduction of new product line as well as traditional adobo recipes. SELFIE #ADOBO CONNECTION CONTEST, where in there will be a contest about taking of pictures with their favorite dishes in adobo connection and it will be posted on https://www.facebook.com/adobocon and we will see how many likes will they get and they will have a chance to win different prices. 15 BREAKDOWN OF THE EXPENSES FOR THE ACTION PROGRAM ACTION PROGRAM| ACTIVITIES| BREAKDOWN OF EXPENSES| TOTAL| 1. SERVICE| BARAKO BOTTOMLESSCONNECTIONADOBO SWAK| 49php/servingWifi connection plan with phone P1,400 X 12 months X 49 stores = 823,20045php/serving| P 823,200| 2. SALES FORCE| EMPLOYEE OF THE MONTHSTORE OF THE YEAR AWARD| P 200 X 12 months X 49 stores=117,600P 50,000 + P 30,000= 80,000| P 117,600+P 80,000= P 197,600| 3. DISTRIBUTION CHANNEL| FRANCHISING| | P 3.75 Million (including the franchise fee), depending on the size and condition of location.| 4. SALES PROMOTION AND ADVERTISING| PRINT ADManila BulletinP 133,799Addt’l. 80% full colorPhilippine StarP 121,600Addt’l. 80% full colorPosters P98/pieceFlyers P 3/pieceStreamers P 400/pieceSelfie AC Contest1st Prize = 10,0002nd Prize= 5,0003rd Prize=3,000| P 133,799 x 1.80 x 52 weeksP 121,600 x 1.80 x 52 weeksP 98 X 49 stores X 10 pcs./ storeP 3 X 49 stores X 8,000 pcs./ storesP 400 X 20pcs. X 49 storesPhp 18,000 cash prize| TOTAL PRINT ADP 23,905,346+P 48,020P 1,176,000P 392,000+P 18,000TOTAL = P 25,539,366| 16 VIII. PROJECTED PROFIT AND LOSS STATEMENT Projected Profit and Loss Statement Adobo Connection Projected Profit and Loss Statement For the year ended December 2013 Income Net salesP372 000 000 Royalties and Franchise fees___8 450 000 Total sales380 450 000 Expenses Cost of Sales: Inventory, January 1 P1 420 000 Purchases 57 000 000 Total available for sales 58 420 000 Inventory, December 31 1 690 000 60 110 000 Operating Expenses: Salaries and Wages 2 000 000 Sales Promotion 180 000 Rent Expense 9 600 000 Light and Water 1 920 000 Licenses and fees 120 000 Depreciation and Amortization 45 000 Repair and Maintenance 35 000 Miscellaneous _ _ 420 000 14 320 000 Income from Operation 74 430 000 Internet Expense 31 500 000 Income before Income Tax 24 600 000 56 100 000 17 IX. Control A. Efficiency Control 1. Predictability a. Rational people need to know what to expect b. Satisfaction of taste and benefits of the customer 2. Distribution Efficiency a. Manage the service time of food b. The taste and freshness of food when it reaches to the customers 3. Awareness efficiency a. Hands-on manager who keeps an eye on the inventory and staff and uses her calculator and brain to make sure the food is priced fairly and b. prepared accurately and served efficiently 4. Market efficiency a. Observe the pricing of food 18 B. Budget Control 1. Check the financial reports every month of the year 2. Monthly monitoring of menu pricing to accommodate any inflation the restaurant is absorbing from its suppliers, or periodically discontinues menu items that are too expensive to make as a result of inflation. 3. Monitor the sales and markets of the company every quarter of the year 19 C. Appendices Places| Adobo Connection| Adobo Republic| Makati| 4| 2| Quezon| 5| 1| Mandaluyong| 4| 1| Pasig| 2| 1| Manila| 8| 1| Pasay| 1| | Muntinlupa| 2| | Las Pinas| 1| | Paranaque| 1| | Caloocan| 1| | Malabon| 1| | Calabarzon| 7| | Cebu| 1| | Taguig| 1| | Total Number of Stores 39 6 20